Seattle Washington Building Expert Directory

Consequential Damages From Subcontractor's Faulty Work Constitutes "Property Damage" and An "Occurrence"

September 03, 2015 — Tred R. Eyerly – Insurance Law Hawaii
The New Jersey appellate court found that the unintended and unexpected consequential damages caused by the subcontractor's defective work constituted "property damage" and an "occurrence." Cypress Point Condo. Ass'n v. Adria Towers, L.L.C., 2015 WL 4111890 (N.J. Super. Ct. App. Div. July 9, 2015). The insured developer hired subcontractors to perform all of the construction work at a condominium project. The subcontractors failed to properly install the roof, flashing, gutters and leaders, brick and EIFS facade, windows, doors and sealants. The AOAO sued the developer, who served as the general contractor, its insurers, and various subcontractors.The AOAO conceded that replacement costs did not constitute "property damage" and an "occurrence" under the policy. The faulty workmanship, however, also caused consequential damages to the common areas and unit owners' property, including damage to steel supports, exterior sheathing and interior sheathing and sheetrock, insulation and other interior areas of the building. Nevertheless, the trial judge determined there was no property damage or "occurrence", and granted summary judgment to the insurers. Read the court decision
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Reprinted courtesy of Tred R. Eyerly, Insurance Law Hawaii
Mr. Eyerly may be contacted at te@hawaiilawyer.com

Hurricane Harvey: Understanding the Insurance Aspects, Immediate Actions for Risk Managers

September 07, 2017 — Gregory D. Podolak - Saxe Doernberger & Vita, P.C.
As it’s been more than 10 years since a major hurricane made landfall in the U.S., Hurricane Harvey will test many risk managers’ insurance programs and response plans. Such disasters are complex, and decisive decision-making could mean the difference between staying in business and closing for good. In this Alert, SDV’s Gregory Podolak and Frank Russo of Procor outline, in clear language, what risk managers need to know about large-scale natural disasters in order to mitigate risks up front and stay sound once they’ve hit. Read the court decision
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Reprinted courtesy of Gregory D. Podolak, Saxe Doernberger & Vita, P.C.
Mr. Podolak may be contacted at gdp@sdvlaw.com

White House Reverses Trump Administration NEPA Cutbacks

October 24, 2021 — Mary B. Powers & Debra K. Rubin - Engineering News-Record
The Biden administration's Oct. 6 announcement that it will restore certain long-standing environmental reviews for infrastructure projects—rolled back by the Trump administration last year—won praise from environmental groups but has some in the construction sector wary of new project delays as a major federal funding push looms. Reprinted courtesy of Mary B. Powers, Engineering News-Record and Debra K. Rubin, Engineering News-Record Ms. Rubin may be contacted at rubind@enr.com Read the full story... Read the court decision
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The General Assembly Seems Ready to Provide Some Consistency in Mechanic’s Lien Waiver

March 14, 2018 — Christopher G. Hill – Construction Law Musings
Back in 2015, the Virginia General Assembly amended the mechanic’s lien statute (Va. Code 43-3) here in Virginia to preclude any contractual provision that diminishes a subcontractor or supplier’s “lien rights in a contract in advance of furnishing any labor, services, or materials.” However, this amendment was only applicable to subcontractors and suppliers. For political and other reasons, general contractors in Virginia were left out of this change. This omission by the legislature put Virginia general contractors in the position of potentially being forced by project owners to waive their mechanic’s lien rights without the ability to run that risk downstream to their subcontractors and suppliers. Read the court decision
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Reprinted courtesy of Christopher G. Hill, The Law Office of Christopher G. Hill
Mr. Hill may be contacted at chrisghill@constructionlawva.com

Preliminary Notice Is More Important Than Ever During COVID-19

June 01, 2020 — Christopher G. Hill - Construction Law Musings
For this week’s Guest Post Friday here at Construction Law Musings, we welcome Justin Gitelman. Justin is the Content Coordinator at Levelset, where over 500,000 contractors and suppliers connect on a cloud-based platform to make payment processes stress-free. Levelset helps contractors and suppliers get payment under control, and sees a world where no one loses a night’s sleep over payment. As the construction industry continues to adjust to the coronavirus and an uncertain future, contractors are struggling to get paid. During the COVID-19 pandemic, construction businesses across Virginia need to do everything they can to protect their payments, and get paid faster. One simple action that can help fight payment delays: sending preliminary notice on every job. Subcontractors and suppliers should send preliminary notices out to the GC, project owner, and/or lender at the start of every single project. These tools allow contractors to make themselves visible on crowded job sites, helping contractors get paid more quickly, and, in some cases, securing their right to file a mechanics lien or bond claim. Preliminary Notices in Construction The purpose of a preliminary notice is to allow each member of a construction project to know who you are and what work you’ll be performing. With coronavirus in mind, contractors can use preliminary notices to remind the hiring party of their payment expectations. When you submit a preliminary notice on every project, you’ll have legal protection in your corner while also giving yourself a greater opportunity to get paid. Read the court decision
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Reprinted courtesy of The Law Office of Christopher G. Hill
Mr. Hill may be contacted at chrissghill@constructionlawva.com

Mortgage Whistleblower Stands Alone as U.S. Won’t Join Lawsuit

April 28, 2014 — Jef Feeley and David McLaughlin – Bloomberg
Two years after Lynn Szymoniak helped the U.S. recover $95 million from Bank of America Corp. and other lenders for mortgage-fraud tied to the housing bubble, the whistle-blower said the government is ignoring a chance to collect more money for identical claims against other banks. Szymoniak got $18 million when the U.S. Justice Department intervened in her foreclosure-fraud lawsuit. The government negotiated a settlement with five lenders including Bank of America and JPMorgan Chase & Co. (JPM) The other banks accused of the same behavior, including Deutsche Bank AG (DBK) and HSBC Holdings Plc (HSBA), are still fighting Szymoniak’s suit, saying she isn’t a true whistle-blower. And the U.S., while continuing its crackdown on banks that packaged risky loans for sale as securities, hasn’t joined with her this time, leaving her to fight the banks alone. U.S. District Judge Joseph Anderson in Columbia, South Carolina, today is set to consider their bid to throw the case out. Mr. Feeley may be contacted at jfeeley@bloomberg.net; Mr. McLaughlin may be contacted at dmclaughlin9@bloomberg.net Read the court decision
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Reprinted courtesy of Jef Feeley and David McLaughlin, Bloomberg

Judicial Panel Denies Nationwide Consolidation of COVID-19 Business Interruption Cases

October 05, 2020 — Tred R. Eyerly - Insurance Law Hawaii
The Judicial Panel on Multidistrict Litigation denied motions to centralize pretrial proceedings in pending COVID-19 business interruption claims. In re COVID-19 Business interruption Protection Insurance Litigation, 2020 U.S. District. LEXIS 144446 (Aug. 12, 2020). Plaintiff policy holders sought consolidation, contending their policies provided coverage for business interruption losses caused by the COVID-19 pandemic and the related government orders suspending, or severely curtailing, operations of non-essential businesses. The Panel considered 15 actions on the pending motions, but had notice of 263 related actions. Some plaintiffs opposed centralization or sought to be excluded from any MDL. Some argued the Panel should centralize the coverage actions on a state-by-state, regional, or insurer-by-insurer basis. The Panel did not accept consolidation of all cases. There was little potential for common discovery across the litigation because there was no common defendant as the actions involved either a single insurer or insurer-group. The various cases involved different insurance policies with different coverages, conditions, exclusions, and policy language, purchased by different businesses in different industries located in different states. Read the court decision
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Reprinted courtesy of Tred R. Eyerly, Damon Key Leong Kupchak Hastert
Mr. Eyerly may be contacted at te@hawaiilawyer.com

Delaware District Court Finds CGL Insurer Owes Condo Builder a Duty to Defend Faulty Workmanship Claims — Based on the Subcontractor Exception to the Your Work Exclusion

October 04, 2021 — Anthony L. Miscioscia & Laura Rossi - White and Williams
On September 7, 2021, in one of the few decisions addressing the scope of coverage for faulty workmanship under Delaware law, the Delaware District Court denied an insurer’s motion seeking a declaration that it neither needed to defend nor indemnify an insured-builder under a commercial general liability policy. In this declaratory judgment action, Pennsylvania National Mutual Casualty Insurance Company v. Zonko Builders, the insurer argued that the ongoing underlying action failed to properly plead an “occurrence” in a case alleging damages to a condominium caused by faulty workmanship involving subcontractors.* Zonko Builders (Zonko) served as the general contractor, supervising subcontractors. The Condominium Association sued Zonko for damages allegedly resulting from design and construction deficiencies. The motion was opposed by the Condominium Association, which cross-moved for partial judgment on the pleadings. In AE-Newark Associates, L.P. v. CNA Insurance Companies, 2001 Del. Super. LEXIS 370 (Del. Super. Ct. Oct. 2, 2001), the Delaware Superior Court found that an insured was entitled to coverage for damages arising from a faulty roof system installed by a subcontractor on behalf of the insured general contractor. Reprinted courtesy of Anthony L. Miscioscia, White and Williams and Laura Rossi, White and Williams Mr. Miscioscia may be contacted at misciosciaa@whiteandwilliams.com Ms. Rossi may be contacted at rossil@whiteandwilliams.com Read the court decision
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SEATTLE WASHINGTON BUILDING EXPERT DIRECTORY AND CAPABILITIES